With an increasing trend in applying undocumented claims and rebates to their payments, clients are putting a serious burden on your accounts receivable deductions management operations. Chargebacks, short payments, bad policies for issuing credits and debt recovery—all these might seem minor but they inevitably lead to the same problems. Instead of being able to enjoy your free capital to the fullest, your money is tied up on your balance sheet, leaving reduced liquidity to invest in the growth of your business. Moreover, it’s impossible to increase shareholders’ payout or buy new equipment for your business. So, how can your business improve its financial efficiency or modify its accounts receivable deductions management?
By automating your accounts receivable deductions management and advanced extraction technologies and applying resulting datasets to your business rules and operations, SenSaaS! can drive ROI and restore your compensation process’s efficiency.
To discover how automating your accounts receivable deductions management can help improve your business’s financial efficiency, here are INTEGRIM’s automation solutions experts’ 5 best practices:
1. Accounts Receivable Deductions Management and Robotic Process Automation (RPA)
Robots can play an important role in gathering data from various sources: websites, marketing and product catalogs, data lookup and equivalences, deductions revealed on your client’s portal, etc. In each case, automating this data collection and transformation can imply significant efforts and reduces cycle time in handling your AR posting.
Many businesses make the mistake of using “temporary staff” to fix their accounts receivable deductions management problems. However, this temporary fix can cause more problems than it can solve, especially if the added staff isn’t aware of your procedures for audits, reconciliation, etc. By using robotic process automation for your accounts receivable deductions management, you eliminate the risk of human data entry errors and speed up the process, which in turn allows you quicker access to the cash trapped on your balance sheets.
2. Advanced OCR With Validation: 100% Accuracy
Using leading-edge semi-structured Optical Character Recognition (OCR) to extract transaction information from your payments notices, check stubs or even EDI streams can help an otherwise tedious and error-prone process. Just consider this: 45 pages of check stubs with line item details of each order, including deductions and rebates! While there might be an exceptional employee out there able to do these relatively fast, they cannot possibly match the speed and accuracy of a robot.
Automating your accounts receivable deductions management will provide you this information with 100% accuracy and will instantaneously match it with your aging files.
3. Business Rules: You’re Driving the Show!
You may already have a list of rebates and deductions that can be matched to your client, SKU or business periods. This list can now be used for auto-matching and validations on your payment information transactions. Open to various formats to illustrate this intelligence to our AP workflow, you get to maintain and update these rules at your own discretion. Even better, there is no programming involved in the process.
4. Circulate and Share Progress with Various Collaborators
Another advantage of automating your accounts receivable deductions management process is that robots can promptly share progress with your various collaborators. Internal or external users can collaborate and manage exceptions generated by this automation. Emails, notes, and comments are shared alongside an electronic version of your payment documents with the various collaborators involved. It helps speed up the process and, based on cloud architecture, becomes usable from any device. Whether desktop or mobile, you can use it in the office or anywhere business takes you.
Automating your AR deductions management process is not only a question of accuracy and speed but also mobility. Since everything is electronic, there are fewer risks of losing track of your payments and other important papers in the mail
5. Notifications of Late Payments: Controlling Your Collection Cycle
One of the key things that influence your financial sheets is the collection of late payments. When done manually, it is easy to get the wrong address for the invoice or to match the wrong bill with the wrong customer. By using robots to control your collection cycle, its management becomes far easier. For example, disposing of aging and client invoice details, SenSaaS! can manage collection by issuing scheduled notices to your clients using standardized communications. So, while a human may not always communicate in a timely fashion with your customers, a robot will have the ability to contact them regularly and consistently to remind them of their overdue payment.
If you have any questions regarding the automation of your accounts receivable deductions management, do not hesitate to contact INTEGRIM’s automation solutions experts today. An experienced member of our team will gladly answer all of your questions.